Meta stock targets $780 as BofA sees Q2 earnings beat, 15% ad growth

For investors, the BofA call represents a tradable signal ahead of Meta’s Q2 report. The expected beat, coupled with persistent double-digit ad revenue expansion, reinforces the bull case that Meta’s AI investments are generating tangible returns. With shares already near record territory, the key questions for the earnings day are whether the magnitude of the beat can justify an expanded multiple and whether forward guidance points to sustained momentum in the back half of 2026.

On July 20, 2026, Bank of America (BofA) released a bullish preview note on Meta Platforms’ upcoming second-quarter earnings, signaling strong confidence that the social media giant will surpass consensus estimates. The note, reported by Proactive Investors, highlights sustained healthy advertising revenue growth as the primary driver, underpinned by the continued monetization of Reels, click-to-message ads, and AI-powered campaign tools. This research comes at a critical juncture for Meta, which has been navigating a complex landscape of regulatory scrutiny and heavy investment in artificial intelligence and the metaverse.

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BofA expects these tools to continue fueling volume growth and pricing power, pushing Q2 2026 revenue above the consensus estimate of approximately $39–40 billion.

The core of BofA’s optimism lies in the digital advertising market’s resilience and Meta’s ability to capture a disproportionate share of incremental spending. Following a turbulent 2022–2023 period defined by Apple’s IDFA changes, Meta has orchestrated a remarkable turnaround by reconstructing its ad targeting infrastructure with AI. Products such as Advantage+ shopping campaigns and automated creative optimizations have delivered demonstrable performance improvements for advertisers, with the company reporting that Advantage+ campaigns drive over 20% lower cost per action compared to manual setups. BofA expects these tools to continue fueling volume growth and pricing power, pushing Q2 2026 revenue above the consensus estimate of approximately $39–40 billion. Earnings per share are likewise anticipated to exceed forecasts, supported by operational discipline and share buybacks.

The broader context is a digital ad market that remains robust despite macroeconomic crosscurrents. Global ad spending is projected to grow in the high single-digits in 2026, with social media and video platforms capturing the largest gains. Meta’s massive user base—over 3.2 billion daily active people across its family of apps—provides an unparalleled scale that advertisers cannot ignore. Reels, in particular, has evolved from a TikTok competitor into a significant revenue stream, with ad loads and engagement rates rising. BofA’s note likely points to a narrowing gap between Reels monetization and Meta’s more mature Feed and Stories formats, suggesting a multi-billion-dollar tailwind.

Implications for Meta stock are decidedly bullish in the near term. Shares have already recovered from 2022 lows and are trading near all-time highs, but the earnings beat could catalyze further upward momentum if the company delivers on Q2 guidance and raises full-year expectations. The market will also parse any commentary on AI capital expenditure, which has ballooned to fund next-generation models and data centers. Investors remain split on whether Meta can generate a sufficient return on its massive AI and metaverse investments, but BofA’s note indicates a view that near-term advertising strength outweighs long-term investment risks.